This document generally relates to operations modeling, and in particular relates to optimizing operational processes by identifying operational processes eligible for centralization, reengineer, and/or outsourcing, and identifying sourcing locations and providers for the operational processes.
A company may analyze its operational processes in an attempt to optimize the processes to achieve cost savings, improved scalability, or some other optimization objective. For example, a company may analyze the operational process involved in manufacturing an engine, and may determine that significant cost savings may be generated if the process of machining the engine block was reengineered and outsourced while the process of building the engine from the machined block remained unchanged.
The operational processes may be optimized by either keeping the process in-house or outsourcing the process, by reengineering the process, out-tasking the process, or by implementing some other optimization process. Additionally, the operational process may be further optimized by identifying sourcing locations to locate the performance of the operational process and providers to perform the operational process. Choosing an optimization process for an operational process, however, is difficult in the absence of a systematic and objective evaluation.
Disclosed herein is a process modeling system and method to evaluate which operational processes should be centralized, reengineered, outsourced, or out-tasked, and for selecting locations for the operational processes.